Inventory management is a key success factor for our clients in order to meet their strategic objectives:
- Customer satisfaction: well-managed inventories ensure high-quality delivery standard levels to the end user, and result in enhanced customer satisfaction.
- Optimised working capital: this reduces inventory value and buffer stocks along the supply chain, optimises the number of inventory turns per year and reduces any risk that may have a significant impact on a business’s financial performance.
- Reduced inventory detention costs: when inventories are optimised, the operating cost (handling, storage, warehouse space, human resource etc) is significantly reduced – especially when high runners and slow moving products are managed in an efficient way.
- Reduced ‘consequential’ costs: there are always going to be additional costs associated with inventory shortages or non-optimised inventory management, often due to manufacturing disruption, late delivery penalties, additional transportation costs (airfreight etc).
Tokema consultants use proven methodologies and calculations to optimise inventory levels against operating costs and service levels. We develop a joined-up approach with our clients to define efficient inventory policies, identify inventory optimum levels, create a migration plan from the existing situation to the desired model, and support our clients’ supply chain teams to execute the new inventory management strategy effectively and autonomously.
This approach requires that each department’s own agenda is aligned with a unique business approach. This is where Tokema Consulting also support clients via implementation or improvement of their Sales and Operations Planning (S&OP) to support the execution of ambitious inventory management strategies.